How to redeem chase points for statement credit

The Chase Freedom® is not currently available to new cardholders. Please visit our list of the best cash-back cards for alternative options.

Redeeming points for a statement credit is typically one of the worst ways you can redeem your credit card rewards, but that's no longer true for select Chase credit card holders.

Chase recently expanded "Pay Yourself Back" to more account holders, providing an alternative way to redeem points. This can be a great alternative if you were saving points for travel but have since canceled plans.

That's where Pay Yourself Back comes in — the new tool allows you to redeem points for statement credits on eligible purchases, including groceries and dining. You can potentially get 25% to 50% more value, making this option well worth considering.

Here are all the eligible cards:

• Chase Sapphire Preferred® Card
• Chase Sapphire Reserve® Card
• Chase Freedom Flex℠
• Chase Freedom Unlimited®
• Chase Freedom® (no longer accepting new applicants)
• Ink Business Preferred® Credit Card
• Ink Plus® Business Card (no longer accepting new applicants)

All cardholders can use Pay Yourself Back to redeem for charitable donations. Meanwhile, Sapphire cardholders can also offset grocery store, dining and home improvement purchases. Ink Business members can also offset select online advertising and shipping expenses. (Learn how Chase classifies purchases for bonus rewards.)

The Pay Yourself Back tool is a smart way to cash out your points for statement credits since you receive more value than usual. Typically, one Chase Ultimate Rewards® point is worth a penny when you redeem through Chase Ultimate Rewards® for a statement credit. But with eligible Pay Yourself Back redemptions, the value increases to 1.25 cents per point or 1.50 cents per point, depending on the card.

Sapphire Preferred, Ink Business and Freedom card holders currently receive 25% more value on redemptions, while Sapphire Reserve cardholders receive 50% more value.

A great way to maximize the use of Pay Yourself Back is to pair it with one of the Chase card's welcome bonuses. The Chase Sapphire Preferred is offering a 60,000-point bonus after you spend $4,000 on purchases in the first three months from account opening. After you earn the bonus, you can redeem points for 25% more value with Pay Yourself Back. That increases the bonus' value up to $750.

Here's how to use Pay Yourself Back

In order to take advantage of Pay Yourself Back, follow these steps:

1. Log onto your account online or via the Chase mobile app.
2. Navigate to the Rewards and benefits page and select Pay Yourself Back.
3. From here, you'll be able to choose one or more eligible purchases you've made in the past 90 days.
4. Enter the cash value for the amount of points you want to redeem. This can be any amount up to the transaction total. (Your points are then calculated accordingly.)
5. Confirm the statement credit amount and total points you're redeeming, then submit the redemption. (It can take a few days to see the credit statement show up on your account, and up to two billing cycles for it to be applied to the balance.)

All eligible cardholders can use Pay Yourself Back now, but access to the tool is for a limited time.

Learn more about how to use Chase's Pay Yourself Back tool.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Chase Ultimate Rewards® points are known for packing an impressive punch and delivering some of the highest value in the credit cards rewards business.

Popular Chase cards, like the Chase Sapphire Preferred® Card, earn coveted Chase Ultimate Rewards points. You can use these points to book travel — including car rentals, hotels, flights, tours and activities — through an easy-to-use portal.

Beyond convenience, Chase points have the potential to be worth 25% or 50% more when they are redeemed through the Chase Ultimate Rewards travel portal or with the new Pay Yourself Back tool.

New Chase Sapphire Preferred cardholders can earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. This is worth $750 when you redeem points for eligible purchases with Pay Yourself Back or for travel through the Chase Ultimate Rewards portal.

And if travel loyalty programs are your thing, Chase points can score you a bigger bang for your buck with higher-than-average redemption rates when transferred to one of Chase's 13 airline and hotel partners. For instance, 75,000 points could buy you three nights at the luxurious Park Hyatt Maldives.

Ahead, Select breaks down our favorite ways to redeem Chase Ultimate Rewards points.

How to redeem your Chase points for maximum value

1. Transfer to airline or hotel partners
2. Redeem for travel through the CUR portal
3. Use Chase Pay Yourself Back
4. Which Chase credit cards earn Ultimate Rewards® points?

Transfer to airline or hotel partners

The Chase travel portal is a great place to book travel fast, but transferring points to one of Chase's 13 travel partners will stretch your rewards even further.

Ultimate Rewards® points can be transferred to travel partners at a 1:1 ratio with either a Sapphire Preferred, Sapphire Reserve or Ink Business Preferred® Credit Card. You can transfer points to the following partners:

• United MileagePlus
• Southwest Rapid Rewards
• Air France-KLM Flying Blue
• British Airways
• Iberia
• Aer Lingus
• Emirates
• JetBlue
• Singapore Airlines
• Virgin Atlantic Flying Club
• World of Hyatt
• Marriott Bonvoy
• IHG Rewards

The 60,000 bonus points from the Sapphire Preferred's bonus would therefore be worth 60,000 points or miles with any of Chase's travel partners.

The best ways to transfer Chase points

You can get outsized value from your Chase points when transferring to airline or hotel partners.

World of Hyatt

The World of Hyatt hotel program often presents one of the best values for transferring Chase points. Standard nights range from just 5,000 to 40,000 points.

You can book luxurious hotels, like the Park Hyatt Maldives or Park Hyatt Sydney for as little as 25,000 points a night. These hotels can often cost more than $1,000 a night.

Matteo Colombo | Moment | Getty Images

Virgin Atlantic Flying Club

Chase cardholders can redeem Virgin Atlantic miles to fly domestic itineraries on Delta for just 7,500 to 15,000 miles per segment, which can be a steal compared to what Delta charges customers when using Delta Skymiles for the same flight. And Delta One business class flights from the U.S. to Europe (with the exception of the U.K.) are 50,000 Virgin Atlantic miles for nonstop itineraries.

Southwest Airlines Rapid Rewards

Southwest transfers work best in a few select scenarios. Mainly, for fares less than $100, Rapid Reward points are worth roughly 1.7 cents each, which beat the value of 1.25 cents or 1.5 cents you can get when booking travel through the Chase portal. And if you have a Southwest Airlines Companion Pass, you can book two flights for the price of one (excluding taxes and fees), in which case your points can be worth as high as 3.4 cents in value for sub-$100 fares.

Redeem for travel through the Ultimate Rewards portal

When you book travel through the Chase Ultimate Rewards travel portal, your points are worth 1.25 cents each with the Sapphire Preferred and Ink Business Preferred or 1.5 cents each with the Sapphire Reserve.

That means you could book a $750 flight (on any airline) via the Chase travel site (which looks and works much like Expedia.com) for 60,000 points with the Sapphire Preferred Card.

This option is great because you can book with virtually any airline or hotel on the portal and there are no blackout dates. You're not limited to the 13 Chase travel partners and their respective award availability, which can sometimes be hard to find.

Use Chase Pay Yourself Back

Which Chase credit cards earn Ultimate Rewards points?

Our methodology

To determine which credit cards offer the best value for various categories, Select analyzed Chase credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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